{"id":18406,"date":"2011-01-20T20:42:57","date_gmt":"2011-01-21T01:42:57","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=18406"},"modified":"2011-01-20T20:42:57","modified_gmt":"2011-01-21T01:42:57","slug":"ten-trading-secrets-for-currency-markets","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2011\/01\/20\/ten-trading-secrets-for-currency-markets\/","title":{"rendered":"Ten Trading Secrets for Currency Markets"},"content":{"rendered":"<p><a href=\"http:\/\/taipanpublishinggroup.com\" target=\"_blank\"><strong><span style=\"text-decoration: underline;\">By Michael Sankowski, Editor, Currency Profits Trader, taipanpublishinggroup.com<\/span><\/strong><\/a><\/p>\n<p><em>For today&#8217;s <\/em>Smart Investing Daily<em>, I&#8217;ve dug into the annals of <\/em>Currency Profits Trader<em> and found Editor Michael Sankowski&#8217;s report on mastering the Forex currency market.<\/em><\/p>\n<p><em>In it he discloses 10 secrets to mastering the <a title=\"Go to article: German Politics Torn Asunder by Euro\" href=\"http:\/\/www.taipanpublishinggroup.com\/tpg\/taipan-daily\/taipan-daily-011211.html\" target=\"_self\">Forex currency market<\/a>.  You know we like to get expert opinions from people who&#8217;ve actually  been there, to reveal the inside details of how lucrative investment  sectors work and how you can gain an edge.<\/em><\/p>\n<p><em>With that in mind, here is Michael Sankowski&#8217;s article&#8230;<\/em><\/p>\n<h2><strong>Guide to Mastering the Forex Currency Markets<\/strong><\/h2>\n<p>The first step in mastering the Forex currency market is knowing which currencies to trade.<\/p>\n<h3><strong>The Best Currencies to Trade<\/strong><\/h3>\n<p>The G-7 or &#8220;major&#8221; currencies are the best currencies to trade. These  countries are the largest and most economically advanced in the world  &#8212; and their currency markets are the most liquid on the planet. A vast  majority of currency trading happens in the majors, so I recommend  trading these currencies first:<\/p>\n<ul>\n<li>U.S. Dollar<\/li>\n<li>Euro<\/li>\n<li>Japanese Yen<\/li>\n<li>British Pound<\/li>\n<li>Swiss Franc<\/li>\n<li>Canadian Dollar<\/li>\n<li>Australian Dollar<\/li>\n<\/ul>\n<h3><strong>Which Currencies to Avoid<\/strong><\/h3>\n<p>In the beginning, avoid trading any currencies outside of the major  currencies. They are known as exotics &#8212; and they have a tendency to  crash without notice. To avoid losing a ton of money, avoid the exotics.<\/p>\n<p>I still focus on the majors after years of trading &#8212; there is plenty  of opportunity to make truckloads of money in the major currencies.<\/p>\n<h3><strong>How to Get Your First Winning Forex Currency Trade Under Your Belt in a Single Day!<\/strong><\/h3>\n<p>Some of the trades I&#8217;ve recommended as the editor of <em>Currency Profits Trader<\/em> have been winners from the very first day. Follow the trade  recommendations carefully &#8212; I put an enormous amount of research and  thought into every recommendation.<\/p>\n<h3><strong>How to Evaluate How Much to Put in Each Currency Trade<\/strong><\/h3>\n<p>This is among the most important topics in trading. Most people risk  far too much in each trade. Many professional traders risk 1% of their  equity per trade &#8212; it is the way to insure that you can always have  capital on hand to make another trade. I recommend putting less than 5%  of your trading equity in each trade. Even with this level of risk, be  careful.<\/p>\n<h3><strong>How to Enter a Position for Maximum Gains<\/strong><\/h3>\n<p>The best way to enter a trade is when it meets several criteria for  being a successful trade &#8212; not only one or two criteria. When a trade  has fundamental and technical support, short- and long-term sentiment,  and momentum going for it, then the odds of a successful trade go up  dramatically. Situations like this happen frequently in the currency  markets, and when they do, large gains can be made.<\/p>\n<h3><strong>How to Track Your Trades in Just Five Minutes a Day<\/strong><\/h3>\n<p>Many people fall into the habit of &#8220;checking&#8221; the markets constantly.  They will pull up prices on their computers, pull up short-term  five-minute charts, and watch the market move trade by trade. Please  don&#8217;t do this. It doesn&#8217;t help trading at all &#8212; it may even be  counterproductive.<\/p>\n<p>You can&#8217;t make the market go your way any faster by watching it  closely, and obsessing over the markets does not help you make objective  decisions about making trades. Of course, you&#8217;ll want to be watching  your trades, but watching them too closely doesn&#8217;t help.<\/p>\n<p>I recommend checking the markets every morning for just a few  minutes, getting on with your life during the day, and then checking  them again in the evening. When you get a trade recommendation from me,  act on it immediately. If you are in a place where you cannot act on the  trade recommendations immediately, get a broker who can execute them  for you.<\/p>\n<p>Beyond that, you don&#8217;t need to do anything more with the markets. I  spend my days researching, thinking through scenarios, and analyzing the  markets so you don&#8217;t have to. When you get a recommendation from me,  know it has the full weight of my best thinking behind it, and 15 years  of market experience.<\/p>\n<h3><strong>The WORST Day of the Week to Enter a Forex Trade<\/strong><\/h3>\n<p>Saturday is the worst day to enter a trade. The <a title=\"Go to article: Is Inflation Directly Tied to the Money Supply?\" href=\"http:\/\/www.taipanpublishinggroup.com\/tpg\/taipan-daily\/taipan-daily-122910.html\" target=\"_self\">Forex currency markets<\/a> are always open, but at different times of the week there are different  levels of liquidity. During the workweek &#8212; that is, from Sunday night  (Asian Week Open) to Friday at 5 p.m. ET &#8212; the markets are liquid. As a  result, the prices you get on trades are reasonable.<\/p>\n<p>But on Saturday and Sunday morning, the markets are not liquid. But  on many Forex platforms, you can still place a trade. You&#8217;ll get a  terrible price &#8212; and make some bank trader overjoyed as he rakes in the  bucks &#8212; but you can place a trade.<\/p>\n<p>This is why I avoid trading on the weekends, and Saturday in particular.<\/p>\n<p>(By the way, Investing doesn&#8217;t have to be complicated. Sign up for <em>Smart Investing Daily<\/em> and let me and editors Sara Nunnally and Jared Levy simplify the stock market for you with their <a title=\"Sign up for Smart Investing Daily\" href=\"http:\/\/www.taipanpublishinggroup.com\/free-signups\/splash\/sid-video-su2.html\" target=\"_self\">easy-to-understand investment articles<\/a>.)<\/p>\n<h3><strong>How to Exit a Position for Maximum Gains<\/strong><\/h3>\n<p>I put profit targets on nearly every recommendation. The secret to  exiting correctly is in sticking to a system. When you have clear profit  targets backed up by research, exiting becomes easy.<\/p>\n<p>Trading is as much about the exits as the entries. Having a great  trading idea or a great entry to a trade is exciting, so many traders do  not focus on the exit when they do have an open profit. But the exit is  how you put money into your account.<\/p>\n<p>I put profit targets on my trades, but I also have fundamental  reasons for trades. If the fundamentals of the trade change in a  negative way, I&#8217;ll get out before it reaches the profit target.<\/p>\n<p>It is important to know that traders have been making money for  centuries. There will always be another opportunity to make money in the  markets, so take your profits, stick to the system, and wait for the  next good opportunity.<\/p>\n<h3><strong>Three Industry-Leading Investment Websites That &#8212; as a Currency Trader &#8212; You Must Know About!<\/strong><\/h3>\n<p>The three websites I look to every day for currency trading are all  related to data. I&#8217;ve found that most commentary about the currency  markets is based on wildly inaccurate assumptions.<\/p>\n<p><strong>1. Bloomberg and economic calendars:<\/strong><\/p>\n<ul>\n<li><a title=\"Go to Bloomberg Markets\" href=\"http:\/\/www.bloomberg.com\/markets\/ecalendar\/index.html\" target=\"_blank\">Bloomberg Markets<\/a><\/li>\n<li><a title=\"Go to 2011 Wall Street Journal Economic Calendar\" href=\"http:\/\/online.wsj.com\/mdc\/public\/page\/2_3063-globalEconomicCalendar.html\" target=\"_blank\">Wall Street Journal 2011 Economic Calendar<\/a><\/li>\n<\/ul>\n<p>There are lots of economic calendars out there, but Econoday.com has  the best ones. Bloomberg is a must-read, and the more technical articles  tend to be filled with links to interesting data.<\/p>\n<p><strong>2. Chicago Mercantile Exchange website with currency prices:<\/strong><\/p>\n<ul>\n<li><a title=\"Go to CME Group E-quivalents\" href=\"http:\/\/datasuite.cmegroup.com\/EFXweb\/index.html\" target=\"_blank\">CME Group E-quivalents<\/a><\/li>\n<\/ul>\n<p>Here are the current market prices for both Futures and Cash FX,  options price information including volatility, and prices on almost  every commodity traded in the United States &#8212; including gold. The CME  runs an incredible site.<\/p>\n<p><strong>3. The St. Louis Federal Reserve Economic Data (FRED) &#8212; it has almost everything:<\/strong><\/p>\n<ul>\n<li><a title=\"Go to Federal Reserve Economic Data\" href=\"http:\/\/research.stlouisfed.org\/fred2\/\" target=\"_blank\">Federal Reserve Economic Data<\/a><\/li>\n<\/ul>\n<p>This is a gold mine of economic information, and you can create excellent charts with it.<\/p>\n<p><strong>The Ultimate Currency Risk-Control Formula and How It Can Protect Your Money!<\/strong><\/p>\n<p>I use something I call Dollar Volatility to determine how much the  markets are moving. Dollar Volatility is a quick and easy way to tell  how your account is going to move if you trade a specific currency  market. I explain how to calculate Dollar Volatility in my report &#8220;The  Leverage Loophole&#8221;*.<\/p>\n<p><strong>P.S.<\/strong> Learn how a $600 billion government-backed &#8220;currency cartel&#8221; could <em>crush<\/em> your retirement dreams&#8230; read on to learn how to protect <em>and<\/em> build your wealth with one of the most <a title=\"Learn more about Currency Profits Trader\" href=\"https:\/\/orders.taipanpublishinggroup.com\/WCT\/WWCTM104\/\" target=\"_blank\">powerful financial weapons<\/a>.<\/p>\n<p><strong><em>*Editor&#8217;s Note:<\/em><\/strong><em> &#8220;The Leverage Loophole&#8221; is another in-depth report by Michael Sankowski, available to all <\/em>Currency Profits Trader<em> subscribers. <a title=\"Learn more about Currency Profits Trader\" href=\"https:\/\/orders.taipanpublishinggroup.com\/WCT\/WWCTM104\/\" target=\"_blank\">You can learn more about Michael and his service here.<\/a><\/em><\/p>\n<p><strong><em>About the Author<\/em><\/strong><\/p>\n<p>Michael Sankowski is the Editor of Taipan Publishing Group&#8217;s <em><a title=\"Learn more about Currency Profits Trader\" href=\"https:\/\/orders.taipanpublishinggroup.com\/WCT\/WWCTL709\/\" target=\"_blank\">Currency Profits Trader<\/a><\/em>.  He has worked as a financial trader and analyst for the past 13 years  in over 60 financial markets, beginning as runner on the floor of the  Chicago Board of Trade in 1994 and working his way up to become a  trader. Michael has traded for a $250 million hedge fund, which required  him to trade all over the world, including the United States, Europe  and Asia. He has also worked as a product designer for U.S. Futures  Exchange, where he focused on trading in Forex, futures, options and  fixed-income cash markets.<\/p>\n<p>Michael holds the prestigious CFA Charterholder and Chartered  Alternative Investment Analyst (CAIA) designations. The CFA charter is a  certification for finance and investment professionals, particularly in  the fields of investment management and financial analysis of stocks.  The CAIA designation establishes a standard for those who specialize in  the area of alternative investments, such as hedge funds, venture  capital, private equity and real estate investment. Michael&#8217;s solid  background and certifications in financial trading make him the best man  to share his expertise and Forex recommendations with the readers of  Taipan Publishing Group&#8217;s <em>Currency Profits Trader<\/em>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The G-7 or &#8220;major&#8221; currencies are the best currencies to trade. These countries are the largest and most economically advanced in the world &#8212; and their currency markets are the most liquid on the planet. A vast majority of currency trading happens in the majors, so I recommend trading these currencies first&#8230;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-18406","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/18406","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/comments?post=18406"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/18406\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=18406"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=18406"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=18406"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}